$Vista Outdoor (VSTO.US)$Revenue declined over the first 3 y...

Revenue growth slowed to 4.6% in the first three quarters of 2023. Operating profit plummeted by 19% due to rapid cost and expense growth, while net income also declined by 21% due to the rapid increase in interest expenses. This is quite perplexing, especially considering the substantial increase in income over the past two years.

The debt-to-asset ratio decreased continuously after reaching a high of 68.3% in 2020, dropping to 53.1% in 2022, but then increased to 57.3% in 2023 Q3.

The balance sheet shows that the amounts and growth rates of accounts receivable and inventory seem fairly normal, with inventory growing slightly faster in the first three quarters of 2023.

Goodwill increased from 0.401 billion in 2022 to 0.942 billion, indicating a significant acquisition. In 2023 Q3, goodwill surged to 1.59 billion, exceeding the net assets of 1.42 billion, with long-term borrowings also increasing to 1.078 billion.

Currently, the pe is only 3.3, pe TTM 3.9, the market's low valuation can be understood because the sustainability of the short-term growth brought by acquisitions remains to be tested, it is more appropriate to remain cautious at present.